##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q/A


Amendment No. 1


|  |  |                                                                                                
|- |  | -----------------------------------------------------------------------------------------------
|þ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES AND EXCHANGE ACT OF 1934
|  |  | For the quarterly period ended August 31, 2005                                                 
|  |  | OR                                                                                             
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934   
|  |  | for the transition period
    from           to                                                

Commission file number 0-19603


CENTENNIAL COMMUNICATIONS CORP.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                      
|------------------------------------------------------------------ |  | -------------------------------------
|Delaware                                                           |  | 06-1242753                           
|                                                                  
|(State or other jurisdiction
    of incorporation or organization) |  | (IRS Employer
    Identification No.)

3349 Route 138


Wall, NJ 07719


(Address of principal executive offices, including zip
code)


(732) 556-2200


(Registrants telephone number, including area code)




þ o


þ o


o þ














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EXPLANTORY NOTE








1



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##### 



TABLE OF CONTENTS


|                                   |  |                                                                                           |  |   
|---------------------------------- |  | ----------------------------------------------------------------------------------------- |  | --
|Part I  Financial
    Information |  |                                                                                          
|Item 1.                            |  | Financial Statements                                                                      |  | 3 
|Item 2.                            |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations |  | 23
|Item 3.                            |  | Quantitative and Qualitative Disclosures
    about Market Risk                            |  | 37
|Item 4.                            |  | Controls and Procedures                                                                   |  | 38
|Part II  Other
    Information   
|Item 1.                            |  | Legal Proceedings                                                                         |  | 39
|Item 2.                            |  | Unregistered Sales of Equity Securities and
    Use of Proceeds                           |  | 39
|Item 3.                            |  | Defaults Upon Senior Securities                                                           |  | 39
|Item 4.                            |  | Submission of Matters to a Vote of Security
    Holders                                   |  | 39
|Item 5.                            |  | Other Information                                                                         |  | 39
|Item 6.                            |  | Exhibits                                                                                  |  | 39

2



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##### 






PART I  FINANCIAL INFORMATION







|        |                     
|------- | --------------------
|ITEM 1. | FINANCIAL STATEMENTS

CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(Dollar amounts in thousands, except share data)


|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |   |           |          |           |  
|------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------- | --------- | -------- | ------------ | - | --------- | -------- | --------- | -
|                                                                                            |                                                                                                                                                                                                              | August 31, 2005                             |           |          | May 31, 2005 |  
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | (Unaudited)                                 |           |          |             
|                                                                                            |                                                                                                                                                                                                              | (As restated)                               |           |          |             
|ASSETS                                                                                      |                                                                                                                                                                                                              |                                             |           |         
|CURRENT ASSETS:                                                                             |                                                                                                                                                                                                              |                                             |           |          |              |   |           |         
|                                                                                            | Cash and cash equivalents                                                                                                                                                                                    |                                             | $         | 138,177  |              |   | $         | 132,820  |          
|                                                                                            | Accounts receivable, less allowance for doubtful accounts of
    $7,043 and $6,874, respectively                                                                                                             |                                             |           | 115,948  |              |   |           | 103,309  |          
|                                                                                            | Inventory  phones and accessories, net                                                                                                                                                                      |                                             |           | 15,548   |              |   |           | 24,713   |          
|                                                                                            | Prepaid expenses and other current assets                                                                                                                                                                    |                                             |           | 34,418   |              |   |           | 32,530   |          
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | Total Current Assets                        |           |          | 304,091      |   |           |          | 293,372   |  
|Property, plant and equipment, net                                                          |                                                                                                                                                                                                              |                                             | 619,360   |          |              |   | 618,947   |         
|Equity investments in wireless systems, net                                                 |                                                                                                                                                                                                              |                                             | 2,608     |          |              |   | 2,500     |         
|Debt issuance costs, less accumulated amortization of $16,056
    and $14,418, respectively |                                                                                                                                                                                                              |                                             | 42,834    |          |              |   | 44,471    |         
|U.S. wireless licenses                                                                      |                                                                                                                                                                                                              |                                             | 383,858   |          |              |   | 383,858   |         
|Caribbean wireless licenses, net                                                            |                                                                                                                                                                                                              |                                             | 69,242    |          |              |   | 69,492    |         
|Goodwill                                                                                    |                                                                                                                                                                                                              |                                             | 26,704    |          |              |   | 26,704    |         
|Transmission and connecting rights, net                                                     |                                                                                                                                                                                                              |                                             | 730       |          |              |   | 752       |         
|Cable facility, net                                                                         |                                                                                                                                                                                                              |                                             | 3,910     |          |              |   | 3,970     |         
|Other assets, net                                                                           |                                                                                                                                                                                                              |                                             | 2,966     |          |              |   | 2,674     |         
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | TOTAL ASSETS                                |           | $        | 1,456,303    |   |           | $        | 1,446,740 |  
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                      
|CURRENT LIABILITIES:                                                                        |                                                                                                                                                                                                              |                                             |           |          |              |   |           |         
|                                                                                            | Current portion of long-term debt                                                                                                                                                                            |                                             | $         | 5,742    |              |   | $         | 5,738    |          
|                                                                                            | Accounts payable                                                                                                                                                                                             |                                             |           | 37,544   |              |   |           | 36,653   |          
|                                                                                            | Accrued expenses and other current liabilities                                                                                                                                                               |                                             |           | 175,851  |              |   |           | 192,503  |          
|                                                                                            | Payable to affiliates                                                                                                                                                                                        |                                             |           | 125      |              |   |           | 125      |          
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | Total Current Liabilities                   |           |          | 219,262      |   |           |          | 235,019   |  
|Long-term debt                                                                              |                                                                                                                                                                                                              |                                             | 1,612,658 |          |              |   | 1,613,371 |         
|Deferred federal income taxes                                                               |                                                                                                                                                                                                              |                                             | 109,660   |          |              |   | 99,719    |         
|Other liabilities                                                                           |                                                                                                                                                                                                              |                                             | 13,866    |          |              |   | 14,612    |         
|Minority interest in subsidiaries                                                           |                                                                                                                                                                                                              |                                             | 2,663     |          |              |   | 2,451     |         
|Commitments and contingencies (see Note 7)                                                  |                                                                                                                                                                                                              |                                             |           |          |              |   |           |         
|STOCKHOLDERS DEFICIT:                                                                      |                                                                                                                                                                                                              |                                             |           |          |              |   |           |         
|                                                                                            | Preferred stock, $0.01 par value per share, 10,000,000
    authorized, no shares issued or outstanding                                                                                                       |                                             |           |         |              |   |           |         |          
|                                                                                            | Common stock $0.01 par value per share,
    240,000,000 shares authorized; issued 104,333,992 and
    104,097,923 shares, respectively; and outstanding
    104,263,489 and 104,027,420 shares, respectively |                                             |           | 1,043    |              |   |           | 1,041    |          
|                                                                                            | Additional paid-in capital                                                                                                                                                                                   |                                             |           | 481,511  |              |   |           | 480,276  |          
|                                                                                            | Accumulated deficit                                                                                                                                                                                          |                                             |           | (983,218 | )            |   |           | (997,893 | )        
|                                                                                            | Accumulated other comprehensive loss                                                                                                                                                                         |                                             |           | (65      | )            |   |           | (779     | )        
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              |                                             | (500,729  | )        |              |   | (517,355  | )       
|                                                                                            | Less: cost of 70,503 common shares in treasury                                                                                                                                                               |                                             |           | (1,077   | )            |   |           | (1,077   | )        
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | Total Stockholders Deficit                 |           |          | (501,806     | ) |           |          | (518,432  | )
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  
|                                                                                            |                                                                                                                                                                                                              | TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |           | $        | 1,456,303    |   |           | $        | 1,446,740 |  
|                                                                                            |                                                                                                                                                                                                              |                                             |           |          |              |  



3



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##### 



CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Dollar amounts in thousands, except per share data)


|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |      |         |         |       |      | 
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ---------------------------------------------------- | -------------------- | ------- | --------------- | ---- | ------- | ------- | ----- | ---- | 
|                                                                                                                                                    |                                                                               | Three Months Ended                                   |                     
|                                                                                                                                                    |                                                                               |                                                      |                     
|                                                                                                                                                    |                                                                               | August 31, 2005                                      |                      |         | August 31, 2004 |     
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    |                                                                               | (Unaudited)                                          |                     
|Revenue:                                                                                                                                            |                                                                               |                                                      |                      |         |                 |      |         |        
|                                                                                                                                                    | Service revenue                                                               |                                                      | $                    | 228,223 |                 |      | $       | 210,356 |      
|                                                                                                                                                    | Equipment sales                                                               |                                                      |                      | 9,020   |                 |      |         | 6,426   |      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    |                                                                               |                                                      | 237,243              |         |                 |      | 216,782 |        
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Costs and Expenses:                                                                                                                                 |                                                                               |                                                      |                      |         |                 |      |         |        
|                                                                                                                                                    | Cost of services (exclusive of depreciation and amortization
    shown below) |                                                      |                      | 49,180  |                 |      |         | 41,490  |      
|                                                                                                                                                    | Cost of equipment sold                                                        |                                                      |                      | 25,182  |                 |      |         | 21,326  |      
|                                                                                                                                                    | Sales and marketing                                                           |                                                      |                      | 25,550  |                 |      |         | 24,624  |      
|                                                                                                                                                    | General and administrative                                                    |                                                      |                      | 43,148  |                 |      |         | 37,741  |      
|                                                                                                                                                    | Depreciation and amortization                                                 |                                                      |                      | 32,751  |                 |      |         | 29,158  |      
|                                                                                                                                                    |                                                                               | (Gain) loss on disposition of assets                 |                      |         | (85             | )    |         |         | 432   |     
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    |                                                                               |                                                      | 175,726              |         |                 |      | 154,771 |        
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Operating income                                                                                                                                    |                                                                               |                                                      | 61,517               |         |                 |      | 62,011  |        
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Interest expense, net                                                                                                                               |                                                                               |                                                      | (33,995              | )       |                 |      | (36,479 | )      
|Other expense                                                                                                                                       |                                                                               |                                                      | (6                   | )       |                 |      | (878    | )      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Income from continuing operations before income tax expense,
    minority interest in income of subsidiaries and income from
    equity investments |                                                                               |                                                      | 27,516               |         |                 |      | 24,654  |        
|                                                                                                                                                    | Income tax expense                                                            |                                                      |                      | (12,802 | )               |      |         | (14,110 | )    
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Income from continuing operations before minority interest in
    income of subsidiaries and income from equity investments                         |                                                                               |                                                      | 14,714               |         |                 |      | 10,544  |        
|Minority interest in income of subsidiaries                                                                                                         |                                                                               |                                                      | (212                 | )       |                 |      | (226    | )      
|Income from equity investments                                                                                                                      |                                                                               |                                                      | 108                  |         |                 |      | 145     |        
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Income from continuing operations                                                                                                                   |                                                                               |                                                      | 14,610               |         |                 |      | 10,463  |        
|Discontinued operations:                                                                                                                            |                                                                               |                                                      |                      |         |                 |      |         |        
|                                                                                                                                                    | Loss                                                                          |                                                      |                      |        |                 |      |         | (2,425  | )    
|                                                                                                                                                    | Gain on disposition                                                           |                                                      |                      | 100     |                 |      |         |        |      
|                                                                                                                                                    | Tax (expense) benefit                                                         |                                                      |                      | (35     | )               |      |         | 429     |      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Net income (loss) from discontinued operations                                                                                                      |                                                                               |                                                      | 65                   |         |                 |      | (1,996  | )      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Net income                                                                                                                                          |                                                                               | $                                                    | 14,675               |         |                 | $    | 8,467   |        
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Earnings (loss) per share:                                                                                                                          |                                                                               |                                                      |                      |         |                 |      |         |        
|                                                                                                                                                    | Basic                                                                         |                                                      |                      |         |                 |      |         |         |      
|                                                                                                                                                    |                                                                               | Earnings per share from continuing operations        |                      | $       | 0.14            |      |         | $       | 0.10  |     
|                                                                                                                                                    |                                                                               | Income (loss) per share from discontinued operations |                      |         | 0.00            |      |         |         | (0.02 | )   
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    |                                                                               |                                                      | Net income per share |         | $               | 0.14 |         |         | $     | 0.08 | 
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    | Diluted                                                                       |                                                      |                      |         |                 |      |         |         |      
|                                                                                                                                                    |                                                                               | Earnings per share from continuing operations        |                      | $       | 0.14            |      |         | $       | 0.10  |     
|                                                                                                                                                    |                                                                               | Income (loss) per share from discontinued operations |                      |         | 0.00            |      |         |         | (0.02 | )   
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    |                                                                               |                                                      | Net income per share |         | $               | 0.14 |         |         | $     | 0.08 | 
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|Weighted-average number of shares outstanding:                                                                                                      |                                                                               |                                                      |                      |         |                 |      |         |        
|                                                                                                                                                    | Basic                                                                         |                                                      |                      | 104,108 |                 |      |         | 103,213 |      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     
|                                                                                                                                                    | Diluted                                                                       |                                                      |                      | 106,876 |                 |      |         | 104,281 |      
|                                                                                                                                                    |                                                                               |                                                      |                      |         |                 |     



4



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##### 



CENTENNIAL COMMUNICATIONS CORP. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Dollar amounts in thousands)


|                                                                                      |                                                                               |                                           |         |         |            |   |         |         |         |  
|------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ----------------------------------------- | ------- | ------- | ---------- | - | ------- | ------- | ------- | -
|                                                                                      |                                                                               | Three Months Ended                        |        
|                                                                                      |                                                                               |                                           |        
|                                                                                      |                                                                               | August 31,                                |         |         | August 31, |  
|                                                                                      |                                                                               | 2005                                      |         |         | 2004       |  
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      |                                                                               | (Unaudited)                               |        
|OPERATING ACTIVITIES:                                                                 |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Net income                                                                    |                                           | $       | 14,675  |            |   | $       | 8,467   |        
|Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Depreciation and amortization                                                 |                                           |         | 32,751  |            |   |         | 35,057  |        
|                                                                                      | Minority interest in income of subsidiaries                                   |                                           |         | 212     |            |   |         | 226     |        
|                                                                                      | Income from equity investments                                                |                                           |         | (108    | )          |   |         | (145    | )      
|                                                                                      | Distributions received from equity investments                                |                                           |         |        |            |   |         | 570     |        
|                                                                                      | Gain on disposition of assets                                                 |                                           |         | 185     |            |   |         | 679     |        
|                                                                                      | Changes in assets and liabilities                                             |                                           |         | (15,319 | )          |   |         | (29,630 | )      
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      | Total adjustments                                                             |                                           |         | 17,721  |            |   |         | 6,757   |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      |                                                                               | Net cash provided by operating activities |         |         | 32,396     |   |         |         | 15,224  |  
|                                                                                      |                                                                               |                                           |         |         |            |  
|INVESTING ACTIVITIES:                                                                 |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Proceeds from disposition of assets, net of cash expenses                     |                                           |         | 5       |            |   |         | 20      |        
|                                                                                      | Capital expenditures                                                          |                                           |         | (26,665 | )          |   |         | (29,120 | )      
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      |                                                                               | Net cash used in investing activities     |         |         | (26,660    | ) |         |         | (29,100 | )
|                                                                                      |                                                                               |                                           |         |         |            |  
|FINANCING ACTIVITIES:                                                                 |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Repayment of debt                                                             |                                           |         | (1,616  | )          |   |         | (1,634  | )      
|                                                                                      | Proceeds from the exercise of stock options                                   |                                           |         | 853     |            |   |         | 193     |        
|                                                                                      | Proceeds from issuance of common stock under employee stock
    purchase plan |                                           |         | 384     |            |   |         | 425     |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      |                                                                               | Net cash used in financing activities     |         |         | (379       | ) |         |         | (1,016  | )
|                                                                                      |                                                                               |                                           |         |         |            |  
|Net increase (decrease) in cash and cash equivalents                                  |                                                                               |                                           | 5,357   |         |            |   | (14,892 | )      
|Cash and cash equivalents, beginning of period                                        |                                                                               |                                           | 132,820 |         |            |   | 112,104 |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|Cash and cash equivalents, end of period                                              |                                                                               | $                                         | 138,177 |         |            | $ | 97,212  |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|SUPPLEMENTAL CASH FLOW DISCLOSURE:                                                    |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Cash paid during the period for:                                              |                                           |         |         |            |   |         |         |        
|                                                                                      | Interest                                                                      |                                           | $       | 56,661  |            |   | $       | 62,495  |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|                                                                                      | Income taxes                                                                  |                                           | $       | 1,561   |            |   | $       | 968     |        
|                                                                                      |                                                                               |                                           |         |         |            |  
|NON-CASH TRANSACTION:                                                                 |                                                                               |                                           |         |         |            |   |         |        
|                                                                                      | Fixed assets acquired under capital leases                                    |                                           | $       | 714     |            |   | $       | 1,398   |        
|                                                                                      |                                                                               |                                           |         |         |            |  



5



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##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


(Dollar amounts in thousands, except per share amounts)


NOTE 1.     INTERIM FINANCIAL
STATEMENTS




Income Taxes:








Stock-Based Compensation:




6



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##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                                                                                                            |                      |                    |       |        |      |  |     |       |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ------------------ | ----- | ------ | ---- |  | --- | ----- | ---- | 
|                                                                                                                                            |                      | Three Months Ended |      
|                                                                                                                                            |                      | August 31,         |      
|                                                                                                                                            |                      |                    |      
|                                                                                                                                            |                      | 2005               |       |        | 2004 | 
|                                                                                                                                            |                      |                    |       |        |      | 
|Net income (loss):                                                                                                                          |                      |                    |       |        |      |  |     |      
|                                                                                                                                            | As reported          |                    | $     | 14,675 |      |  | $   | 8,467 |     
|Deduct: total stock based employee compensation determined under
    fair-value based method for all awards, net of related tax
    effects |                      |                    | 1,494 |        |      |  | 763 |      
|                                                                                                                                            |                      |                    |       |        |      | 
|                                                                                                                                            | Pro forma            |                    | $     | 13,181 |      |  | $   | 7,704 |     
|Earnings per share:                                                                                                                         |                      |                    |       |        |      |  |     |      
|                                                                                                                                            | Basic: As reported   |                    | $     | 0.14   |      |  | $   | 0.08  |     
|                                                                                                                                            |                      | Pro forma          |       | $      | 0.13 |  |     | $     | 0.07 | 
|                                                                                                                                            | Diluted: As reported |                    | $     | 0.14   |      |  | $   | 0.08  |     
|                                                                                                                                            |                      | Pro forma          |       | $      | 0.12 |  |     | $     | 0.07 | 



|                                |  |                    |         |  |      |  |         | 
|------------------------------- |  | ------------------ | ------- |  | ---- |  | ------- | 
|                                |  | Three Months Ended |        
|                                |  | August 31,         |        
|                                |  |                    |        
|                                |  | 2005               |         |  | 2004 | 
|                                |  |                    |         |  |      | 
|Expected volatility             |  |                    | 77.9%   |  |      |  | 121.2%  | 
|Risk-free interest rate         |  |                    | 4.3%    |  |      |  | 3.5%    | 
|Expected lives of option grants |  |                    | 4 years |  |      |  | 4 years | 
|Expected dividend yield         |  |                    | 0.00%   |  |      |  | 0.00%   | 

Reclassification:




NOTE 2.     GOODWILL AND OTHER
INTANGIBLE ASSETS




|                                             |  |                 |         |  |              |   |         | 
|-------------------------------------------- |  | --------------- | ------- |  | ------------ | - | ------- | 
|                                             |  | As of           |         |  | As of        |  
|                                             |  | August 31, 2005 |         |  | May 31, 2005 |  
|                                             |  |                 |         |  |              |  
|U.S. wireless licenses                       |  | $               | 383,858 |  |              | $ | 383,858 | 
|Caribbean wireless licenses  Puerto Rico(1) |  |                 | 54,159  |  |              |   | 54,159  | 
|                                             |  |                 |         |  |              |  
|Total                                        |  | $               | 438,017 |  |              | $ | 438,017 | 
|                                             |  |                 |         |  |              |  

7



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##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Included in Caribbean wireless licenses on the consolidated
    balance sheet which also includes finite lived wireless assets
    for the Dominican Republic (see table below).







|                                                 |  |        |           |                 |          |   |              |              |       |   |          |  |  |              |        |  |  |   |       | 
|------------------------------------------------ |  | ------ | --------- | --------------- | -------- | - | ------------ | ------------ | ----- | - | -------- |  |  | ------------ | ------ |  |  | - | ----- | 
|                                                 |  |        |           | As of           |          |   | As of        |             
|                                                 |  |        |           | August 31, 2005 |          |   | May 31, 2005 |             
|                                                 |  |        |           |                 |          |   |              |             
|                                                 |  |        |           | Gross           |          |   |              |              | Gross |   |          | 
|                                                 |  | Useful |           |                 | Carrying |   |              | Accumulated  |       |   | Carrying |  |  | Accumulated  |       
|                                                 |  | Life   |           |                 | Amount   |   |              | Amortization |       |   | Amount   |  |  | Amortization |       
|                                                 |  |        |           |                 |          |   |              |              |       |   |          |  |  |              |       
|Caribbean wireless licenses  Dominican Republic |  |        | 20  years |                 |          | $ | 20,000       |              |       | $ | 4,917    |  |  | $            | 20,000 |  |  | $ | 4,667 | 
|Transmission and connecting rights               |  |        | 25  years |                 |          |   | 2,192        |              |       |   | 1,462    |  |  |              | 2,192  |  |  |   | 1,440 | 
|Cable facility                                   |  |        | 25  years |                 |          |   | 6,000        |              |       |   | 2,090    |  |  |              | 6,000  |  |  |   | 2,030 | 
|                                                 |  |        |           |                 |          |   |              |              |       |   |          |  |  |              |       
|Total                                            |  |        |           |                 |          | $ | 28,192       |              |       | $ | 8,469    |  |  | $            | 28,192 |  |  | $ | 8,137 | 
|                                                 |  |        |           |                 |          |   |              |              |       |   |          |  |  |              |       



Goodwill




8



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 3.     DEBT




|                                                                                         |                      |            |         |           |         |   |         |           | 
|---------------------------------------------------------------------------------------- | -------------------- | ---------- | ------- | --------- | ------- | - | ------- | --------- | 
|                                                                                         |                      | As of      |         |           | As of   |  
|                                                                                         |                      | August 31, |         |           | May 31, |  
|                                                                                         |                      | 2005       |         |           | 2005    |  
|                                                                                         |                      |            |         |           |         |  
|New Senior Secured Credit Facility  Term Loans                                          |                      | $          | 591,000 |           |         | $ | 592,500 |          
|81/8% Senior
    Unsecured Notes due 2014 (The 2014 Senior Notes)                      |                      |            | 325,000 |           |         |   | 325,000 |          
|101/8% Senior
    Unsecured Notes due 2013 (The 2013 Senior Notes)                     |                      |            | 500,000 |           |         |   | 500,000 |          
|103/4% Senior
    Subordinated Notes due 2008 (The 2008 Senior Subordinated
    Notes) |                      |            | 145,000 |           |         |   | 145,000 |          
|Capital Lease Obligations                                                                |                      |            | 44,555  |           |         |   | 43,693  |          
|Financing Obligation  Tower Sale                                                        |                      |            | 12,845  |           |         |   | 12,916  |          
|                                                                                         |                      |            |         |           |         |  
|                                                                                         | Total Long-Term Debt |            |         | 1,618,400 |         |   |         | 1,619,109 | 
|Current Portion of Long-Term Debt                                                        |                      |            | (5,742  | )         |         |   | (5,738  | )        
|                                                                                         |                      |            |         |           |         |  
|                                                                                         | Net Long-Term Debt   |            | $       | 1,612,658 |         |   | $       | 1,613,371 | 
|                                                                                         |                      |            |         |           |         |  







9



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |   |           | 
|------------------------------ |  | - | --------- | 
|August 31, 2006                |  | $ | 5,742     | 
|August 31, 2007                |  |   | 5,830     | 
|August 31, 2008                |  |   | 6,007     | 
|August 31, 2009                |  |   | 151,218   | 
|August 31, 2010                |  |   | 285,336   | 
|August 31, 2011 and thereafter |  |   | 1,164,267 | 
|                               |  |   |          
|                               |  | $ | 1,618,400 | 
|                               |  |   |          



NOTE 4.     DISCONTINUED
OPERATIONS






|                                               |  |                  |     |   |      |   |        |  
|---------------------------------------------- |  | ---------------- | --- | - | ---- | - | ------ | -
|                                               |  | Three Months     |    
|                                               |  | Ended August 31, |    
|                                               |  |                  |    
|                                               |  | 2005             |     |   | 2004 |  
|                                               |  |                  |     |   |      |  
|Revenue                                        |  | $                |    |   |      | $ | 12,778 |  
|Loss from discontinued operations              |  |                  |    |   |      |   | (2,425 | )
|Gain on disposition                            |  |                  | 100 |   |      |   |       |  
|Income tax (expense) benefit                   |  |                  | (35 | ) |      |   | 429    |  
|Net income (loss) from discontinued operations |  |                  | 65  |   |      |   | (1,996 | )

NOTE 5.     RECENT ACCOUNTING
PRONOUNCEMENTS






10



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






NOTE 6.     ACQUISITIONS AND
DISPOSITIONS




NOTE 7.     COMMITMENTS AND
CONTINGENCIES


Legal Proceedings:








11



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Guarantees:




Lease Commitments:




Other Commitments and Contingencies:










12



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 8.     SEGMENT
INFORMATION






13



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |               |                    |            |         |      |   |            |         | 
|----------------------------- | ------------- | ------------------ | ---------- | ------- | ---- | - | ---------- | ------- | 
|                              |               | Three Months Ended |           
|                              |               | August 31,         |           
|                              |               |                    |           
|                              |               | 2005               |            |         | 2004 |  
|                              |               |                    |            |         |      |  
|U.S. WIRELESS                 |               |                    |            |         |      |   |            |        
|Service revenue               |               | $                  | 80,903     |         |      | $ | 85,918     |        
|Roaming revenue               |               |                    | 21,225     |         |      |   | 13,308     |        
|Equipment sales               |               |                    | 5,698      |         |      |   | 3,841      |        
|                              |               |                    |            |         |      |  
|                              | Total revenue |                    |            | 107,826 |      |   |            | 103,067 | 
|Adjusted operating income     |               |                    | 40,653     |         |      |   | 47,953     |        
|Total assets                  |               |                    | 1,862,715  |         |      |   | 1,986,022  |        
|Capital expenditures          |               |                    | 9,551      |         |      |   | 9,351      |        
|CARIBBEAN WIRELESS            |               |                    |            |         |      |   |            |        
|Service revenue               |               | $                  | 92,132     |         |      | $ | 79,962     |        
|Roaming revenue               |               |                    | 346        |         |      |   | 458        |        
|Equipment sales               |               |                    | 3,322      |         |      |   | 2,585      |        
|                              |               |                    |            |         |      |  
|                              | Total revenue |                    |            | 95,800  |      |   |            | 83,005  | 
|Adjusted operating income     |               |                    | 36,833     |         |      |   | 32,238     |        
|Total assets                  |               |                    | 496,514    |         |      |   | 497,308    |        
|Capital expenditures          |               |                    | 10,307     |         |      |   | 12,939     |        
|CARIBBEAN BROADBAND           |               |                    |            |         |      |   |            |        
|Switched revenue              |               | $                  | 12,715     |         |      | $ | 11,379     |        
|Dedicated revenue             |               |                    | 14,282     |         |      |   | 12,534     |        
|Wholesale termination revenue |               |                    | 6,576      |         |      |   | 7,572      |        
|Other revenue                 |               |                    | 3,096      |         |      |   | 2,024      |        
|                              |               |                    |            |         |      |  
|                              | Total revenue |                    |            | 36,669  |      |   |            | 33,509  | 
|Adjusted operating income     |               |                    | 16,697     |         |      |   | 11,410     |        
|Total assets                  |               |                    | 695,415    |         |      |   | 801,588    |        
|Capital expenditures          |               |                    | 6,807      |         |      |   | 5,156      |        
|ELIMINATIONS                  |               |                    |            |         |      |   |            |        
|Total revenue(1)              |               | $                  | (3,052     | )       |      | $ | (2,799     | )      
|Total assets(2)               |               |                    | (1,598,341 | )       |      |   | (1,752,785 | )      
|CONSOLIDATED                  |               |                    |            |         |      |   |            |        
|Total revenue                 |               | $                  | 237,243    |         |      | $ | 216,782    |        
|Adjusted operating income     |               |                    | 94,183     |         |      |   | 91,601     |        
|Total assets                  |               |                    | 1,456,303  |         |      |   | 1,532,133  |        
|Capital expenditures          |               |                    | 26,665     |         |      |   | 27,446     |        






|    |                                                                                                   
|--- | --------------------------------------------------------------------------------------------------
|(1) | Elimination of intercompany revenue, primarily from Caribbean
    broadband to Caribbean wireless.
|   
|(2) | Elimination of intercompany investments.                                                          

14



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                            |  |                    |         |   |      |   |         |  
|------------------------------------------- |  | ------------------ | ------- | - | ---- | - | ------- | -
|                                            |  | Three Months Ended |        
|                                            |  | August 31,         |        
|                                            |  |                    |        
|                                            |  | 2005               |         |   | 2004 |  
|                                            |  |                    |         |   |      |  
|Adjusted operating income                   |  | $                  | 94,183  |   |      | $ | 91,601  |  
|Less: depreciation and amortization         |  |                    | (32,751 | ) |      |   | (29,158 | )
|Gain (loss) on disposition of assets        |  |                    | 85      |   |      |   | (432    | )
|                                            |  |                    |         |   |      |  
|Operating income                            |  |                    | 61,517  |   |      |   | 62,011  |  
|Interest expense, net                       |  |                    | (33,995 | ) |      |   | (36,479 | )
|Other expense                               |  |                    | (6      | ) |      |   | (878    | )
|Income tax expense                          |  |                    | (12,802 | ) |      |   | (14,110 | )
|Minority interest in income of subsidiaries |  |                    | (212    | ) |      |   | (226    | )
|Income from equity investments              |  |                    | 108     |   |      |   | 145     |  
|Income (loss) from discontinued operations  |  |                    | 65      |   |      |   | (1,996  | )
|                                            |  |                    |         |   |      |  
|Net income                                  |  | $                  | 14,675  |   |      | $ | 8,467   |  
|                                            |  |                    |         |   |      |  

NOTE 9.     CONDENSED
CONSOLIDATING FINANCIAL DATA




15



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET FINANCIAL DATA


As of August 31, 2005


(As restated)


|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |   |            |           |            |   |           |          |           | 
|---------------------------------------------- | ---------------------------------------------- | ---------------------- | ---------- | ---------- | ---------- |  | --------- | ---------- | ------- | ---------- | -------------- | -------- | --------- | ------------ | -------------- | --------- | ------------ | - | ---------- | --------- | ---------- | - | --------- | -------- | --------- | 
|                                               |                                                | Centennial             |            |            | Centennial |  |           |            |         |            |                |          |           | Centennial   |               
|                                               |                                                | Puerto Rico            |            |            | Cellular   |  |           |            |         | Centennial |                |          |           |              | Communications |          
|                                               |                                                | Operations             |            |            | Operating  |  |           | Non-       |         |            | Communications |          |           |              |                | Corp. and |             
|                                               |                                                | Corp.                  |            |            | Co. LLC    |  |           | Guarantors |         |            | Corp.          |          |           | Eliminations |                |           | Subsidiaries |  
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               |                                                | (Amounts in thousands) |           
|ASSETS                                        
|Current assets:                                |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |   |            |           |            |   |           |         
|                                               | Cash and cash equivalents                      |                        | $          | 75,473     |            |  | $         |           |         |            | $              | 62,704   |           |              | $              |          |              |   | $          |          |            |   | $         | 138,177  |          
|                                               | Accounts receivable, net                       |                        |            | 49,862     |            |  |           |           |         |            |                | 66,086   |           |              |                |          |              |   |            |          |            |   |           | 115,948  |          
|                                               | Inventory  phones and accessories, net        |                        |            | 8,126      |            |  |           |           |         |            |                | 7,422    |           |              |                |          |              |   |            |          |            |   |           | 15,548   |          
|                                               | Prepaid expenses and other current assets      |                        |            | 8,089      |            |  |           |           |         |            |                | 26,329   |           |              |                |          |              |   |            |          |            |   |           | 34,418   |          
|                                               | Assets held for sale                           |                        |            |           |            |  |           |           |         |            |                |         |           |              |                |          |              |   |            |          |            |   |           |         |          
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               |                                                | Total current assets   |            |            | 141,550    |  |           |            |        |            |                |          | 162,541   |              |                |           |             |   |            |           |           |   |           |          | 304,091   | 
|Property, plant & equipment, net               |                                                |                        | 237,085    |            |            |  |          |            |         |            | 382,275        |          |           |              |               |           |              |   |           |           |            |   | 619,360   |         
|Equity investments in wireless systems, net    |                                                |                        |           |            |            |  |          |            |         |            | 2,608          |          |           |              |               |           |              |   |           |           |            |   | 2,608     |         
|Debt issuance costs                            |                                                |                        | 20,664     |            |            |  |          |            |         |            | 22,170         |          |           |              |               |           |              |   |           |           |            |   | 42,834    |         
|U.S. wireless licenses                         |                                                |                        |           |            |            |  |          |            |         |            | 383,858        |          |           |              |               |           |              |   |           |           |            |   | 383,858   |         
|Caribbean wireless licenses, net               |                                                |                        |           |            |            |  |          |            |         |            | 69,242         |          |           |              |               |           |              |   |           |           |            |   | 69,242    |         
|Goodwill                                       |                                                |                        | 4,186      |            |            |  |          |            |         |            | 22,518         |          |           |              |               |           |              |   |           |           |            |   | 26,704    |         
|Intercompany                                   |                                                |                        |           |            |            |  | (166,016  | )          |         |            |               |          |           |              | 286,516        |           |              |   | (120,500   | )         |            |   |          |         
|Investment in subsidiaries                     |                                                |                        |           |            |            |  | 1,151,230 |            |         |            | 510,034        |          |           |              | (751,780       | )         |              |   | (909,484   | )         |            |   |          |         
|Other assets, net                              |                                                |                        | 5,932      |            |            |  |          |            |         |            | 1,674          |          |           |              |               |           |              |   |           |           |            |   | 7,606     |         
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               |                                                | Total                  |            | $          | 409,417    |  |           | $          | 985,214 |            |                | $        | 1,556,920 |              |                | $         | (465,264     | ) |            | $         | (1,029,984 | ) |           | $        | 1,456,303 | 
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|Current liabilities:                           |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |   |            |           |            |   |           |         
|                                               | Current portion of long-term debt              |                        | $          | (12        | )          |  | $         | 5,758      |         |            | $              | (4       | )         |              | $              |          |              |   | $          |          |            |   | $         | 5,742    |          
|                                               | Accounts payable                               |                        |            | 20,809     |            |  |           |           |         |            |                | 16,735   |           |              |                |          |              |   |            |          |            |   |           | 37,544   |          
|                                               | Accrued expenses and other current liabilities |                        |            | 570,350    |            |  |           |           |         |            |                | 374,059  |           |              |                |          |              |   |            | (768,558  | )          |   |           | 175,851  |          
|                                               | Payable to affiliates                          |                        |            |           |            |  |           |           |         |            |                | 125      |           |              |                |          |              |   |            |          |            |   |           | 125      |          
|                                               | Liabilities held for sale                      |                        |            |           |            |  |           |           |         |            |                |         |           |              |                |          |              |   |            |          |            |   |           |         |          
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               | Total current liabilities                      |                        |            | 591,147    |            |  |           | 5,758      |         |            |                | 390,915  |           |              |                |          |              |   |            | (768,558  | )          |   |           | 219,262  |          
|Long-term debt                                 |                                                |                        | 829,576    |            |            |  | 777,001   |            |         |            | 6,081          |          |           |              |               |           |              |   |           |           |            |   | 1,612,658 |         
|Deferred federal income taxes                  |                                                |                        |           |            |            |  |          |            |         |            | 109,660        |          |           |              |               |           |              |   |           |           |            |   | 109,660   |         
|Other liabilities                              |                                                |                        | 3,924      |            |            |  |          |            |         |            | 9,942          |          |           |              |               |           |              |   |           |           |            |   | 13,866    |         
|Intercompany                                   |                                                |                        | 13,317     |            |            |  | 920,500   |            |         |            | 920,500        |          |           |              |               |           |              |   | (1,854,317 | )         |            |   |          |         
|Minority Interest in subsidiaries              |                                                |                        |           |            |            |  |          |            |         |            | 2,663          |          |           |              |               |           |              |   |           |           |            |   | 2,663     |         
|Stockholders (deficit) equity:                |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |   |            |           |            |   |           |         
|                                               | Common stock                                   |                        |            |           |            |  |           |           |         |            |                |         |           |              |                | 1,043     |              |   |            |          |            |   |           | 1,043    |          
|                                               | Additional paid-in capital                     |                        |            | (818,497   | )          |  |           |           |         |            |                | 818,497  |           |              |                | 481,511   |              |   |            |          |            |   |           | 481,511  |          
|                                               | Accumulated deficit                            |                        |            | (209,985   | )          |  |           | (718,045   | )       |            |                | (701,338 | )         |              |                | (946,741  | )            |   |            | 1,592,891 |            |   |           | (983,218 | )        
|                                               | Accumulated other comprehensive loss           |                        |            | (65        | )          |  |           |           |         |            |                |         |           |              |                |          |              |   |            |          |            |   |           | (65      | )        
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               |                                                |                        | (1,028,547 | )          |            |  | (718,045  | )          |         |            | 117,159        |          |           |              | (464,187       | )         |              |   | 1,592,891  |           |            |   | (500,729  | )       
|                                               | Less: treasury shares                          |                        |            |           |            |  |           |           |         |            |                |         |           |              |                | (1,077    | )            |   |            |          |            |   |           | (1,077   | )        
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               | Total stockholders (deficit) equity           |                        |            | (1,028,547 | )          |  |           | (718,045   | )       |            |                | 117,159  |           |              |                | (465,264  | )            |   |            | 1,592,891 |            |   |           | (501,806 | )        
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  
|                                               |                                                | Total                  |            | $          | 409,417    |  |           | $          | 985,214 |            |                | $        | 1,556,920 |              |                | $         | (465,264     | ) |            | $         | (1,029,984 | ) |           | $        | 1,456,303 | 
|                                               |                                                |                        |            |            |            |  |           |            |         |            |                |          |           |              |                |           |              |  

16



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FINANCIAL
DATA


For the Three Months Ended August 31, 2005


|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |   |         |      |   |   |         |        |  
|-------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ---------------------- | ------- | ------ | ---------- | - | ------- | ---------- |  | ---------- | -------------- | ------ | - | ------------ | -------------- | --------- | ------------ | - | ------- | ---- | - | - | ------- | ------ | -
|                                                                                             |                                                                               | Centennial             |         |        | Centennial |   |         |            |  |            |                |        |   | Centennial   |               
|                                                                                             |                                                                               | Puerto Rico            |         |        | Cellular   |   |         |            |  | Centennial |                |        |   |              | Communications |          
|                                                                                             |                                                                               | Operations             |         |        | Operating  |   |         | Non-       |  |            | Communications |        |   |              |                | Corp. and |             
|                                                                                             |                                                                               | Corp.                  |         |        | Co. LLC    |   |         | Guarantors |  |            | Corp.          |        |   | Eliminations |                |           | Subsidiaries |  
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|                                                                                             |                                                                               | (Amounts in thousands) |        
|Revenue                                                                                      |                                                                               | $                      | 101,494 |        |            | $ |        |            |  | $          | 136,975        |        |   | $            |               |           |              | $ | (1,226  | )    |   | $ | 237,243 |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Costs and expenses:                                                                          |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |   |         |      |   |   |         |       
|                                                                                             | Cost of services (exclusive of depreciation and amortization
    shown below) |                        |         | 17,270 |            |   |         |           |  |            |                | 32,909 |   |              |                |          |              |   |         | (999 | ) |   |         | 49,180 |  
|                                                                                             | Cost of equipment sold                                                        |                        |         | 5,460  |            |   |         |           |  |            |                | 19,722 |   |              |                |          |              |   |         |     |   |   |         | 25,182 |  
|                                                                                             | Sales and marketing                                                           |                        |         | 9,422  |            |   |         |           |  |            |                | 16,128 |   |              |                |          |              |   |         |     |   |   |         | 25,550 |  
|                                                                                             | General and administrative                                                    |                        |         | 22,251 |            |   |         |           |  |            |                | 21,124 |   |              |                |          |              |   |         | (227 | ) |   |         | 43,148 |  
|                                                                                             | Depreciation and amortization                                                 |                        |         | 15,729 |            |   |         |           |  |            |                | 17,022 |   |              |                |          |              |   |         |     |   |   |         | 32,751 |  
|                                                                                             | Gain on disposition of assets                                                 |                        |         | (16    | )          |   |         |           |  |            |                | (69    | ) |              |                |          |              |   |         |     |   |   |         | (85    | )
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|                                                                                             |                                                                               |                        | 70,116  |        |            |   |        |            |  |            | 106,836        |        |   |              |               |           |              |   | (1,226  | )    |   |   | 175,726 |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Operating income                                                                             |                                                                               |                        | 31,378  |        |            |   |        |            |  |            | 30,139         |        |   |              |               |           |              |   |        |      |   |   | 61,517  |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Income (loss) from investments in subsidiaries                                               |                                                                               |                        |        |        |            |   | 14,675  |            |  |            | 613            |        |   |              | 14,675         |           |              |   | (29,963 | )    |   |   |        |       
|Interest expense, net                                                                        |                                                                               |                        | (26,111 | )      |            |   | (33,995 | )          |  |            | 26,111         |        |   |              |               |           |              |   |        |      |   |   | (33,995 | )     
|Other expenses                                                                               |                                                                               |                        | (467    | )      |            |   |        |            |  |            | 461            |        |   |              |               |           |              |   |        |      |   |   | (6      | )     
|Intercompany interest allocation                                                             |                                                                               |                        |        |        |            |   | 33,995  |            |  |            | (33,995        | )      |   |              |               |           |              |   |        |      |   |   |        |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Income (loss) from continuing operations before income tax
    expense and minority interest |                                                                               |                        | 4,800   |        |            |   | 14,675  |            |  |            | 23,329         |        |   |              | 14,675         |           |              |   | (29,963 | )    |   |   | 27,516  |       
|Income tax expense                                                                           |                                                                               |                        | (4,187  | )      |            |   |        |            |  |            | (8,615         | )      |   |              |               |           |              |   |        |      |   |   | (12,802 | )     
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Income (loss) from continuing operations before minority interest                            |                                                                               |                        | 613     |        |            |   | 14,675  |            |  |            | 14,714         |        |   |              | 14,675         |           |              |   | (29,963 | )    |   |   | 14,714  |       
|Minority interest in income of subsidiaries                                                  |                                                                               |                        |        |        |            |   |        |            |  |            | (212           | )      |   |              |               |           |              |   |        |      |   |   | (212    | )     
|Income from equity investments                                                               |                                                                               |                        |        |        |            |   |        |            |  |            | 108            |        |   |              |               |           |              |   |        |      |   |   | 108     |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Income (loss) from continuing operations                                                     |                                                                               |                        | 613     |        |            |   | 14,675  |            |  |            | 14,610         |        |   |              | 14,675         |           |              |   | (29,963 | )    |   |   | 14,610  |       
|Income from discontinued operations                                                          |                                                                               |                        |        |        |            |   |        |            |  |            | 65             |        |   |              |               |           |              |   |        |      |   |   | 65      |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  
|Net income (loss)                                                                            |                                                                               | $                      | 613     |        |            | $ | 14,675  |            |  | $          | 14,675         |        |   | $            | 14,675         |           |              | $ | (29,963 | )    |   | $ | 14,675  |       
|                                                                                             |                                                                               |                        |         |        |            |   |         |            |  |            |                |        |   |              |                |           |              |  

17



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FINANCIAL
DATA


For the Three Months Ended August 31, 2005


|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |         |         |   |         |         |         |  
|------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------ | ------- | ---------- | - | - | ---------- | ------- | ---------- | -------------- | -------- | -------- | ------------ | -------------- | --------- | ------------ | - | - | ------- | ------- | - | ------- | ------- | ------- | -
|                                                                                                       |                                                                                                  | Centennial                                          |        |         | Centennial |   |   |            |         |            |                |          |          | Centennial   |               
|                                                                                                       |                                                                                                  | Puerto Rico                                         |        |         | Cellular   |   |   |            |         | Centennial |                |          |          |              | Communications |          
|                                                                                                       |                                                                                                  | Operations                                          |        |         | Operating  |   |   | Non-       |         |            | Communications |          |          |              |                | Corp. and |             
|                                                                                                       |                                                                                                  | Corp.                                               |        |         | Co. LLC    |   |   | Guarantors |         |            | Corp.          |          |          | Eliminations |                |           | Subsidiaries |  
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | (Amounts in thousands)                              |       
|OPERATING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |         |         |   |         |        
|                                                                                                       | Net income                                                                                       |                                                     | $      | 613     |            |   | $ | 14,675     |         |            | $              | 14,675   |          |              | $              | 14,675    |              |   | $ | (29,963 | )       |   | $       | 14,675  |        
|Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities: |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |         |         |   |         |        
|                                                                                                       | Depreciation and amortization                                                                    |                                                     |        | 15,729  |            |   |   |           |         |            |                | 17,022   |          |              |                |          |              |   |   |        |         |   |         | 32,751  |        
|                                                                                                       | Minority interest in loss of subsidiaries                                                        |                                                     |        |        |            |   |   |           |         |            |                | 212      |          |              |                |          |              |   |   |        |         |   |         | 212     |        
|                                                                                                       | Income from equity investments                                                                   |                                                     |        |        |            |   |   |           |         |            |                | (108     | )        |              |                |          |              |   |   |        |         |   |         | (108    | )      
|                                                                                                       | Equity in undistributed earnings of subsidiaries                                                 |                                                     |        |        |            |   |   | (14,675    | )       |            |                | (613     | )        |              |                | (14,675   | )            |   |   | 29,963  |         |   |         |        |        
|                                                                                                       | (Loss) gain on disposition of assets                                                             |                                                     |        | (16     | )          |   |   |           |         |            |                | 201      |          |              |                |          |              |   |   |        |         |   |         | 185     |        
|                                                                                                       | Changes in assets and liabilities, net of effects of
    acquisitions and dispositions and other |                                                     |        | 2,641   |            |   |   | (191,086   | )       |            |                | 138,384  |          |              |                | 15,910    |              |   |   | 18,832  |         |   |         | (15,319 | )      
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       | Total adjustments                                                                                |                                                     |        | 18,354  |            |   |   | (205,761   | )       |            |                | 155,098  |          |              |                | 1,235     |              |   |   | 48,795  |         |   |         | 17,721  |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       | NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                              |                                                     |        | 18,967  |            |   |   | (191,086   | )       |            |                | 169,773  |          |              |                | 15,910    |              |   |   | 18,832  |         |   |         | 32,396  |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|INVESTING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |         |         |   |         |        
|                                                                                                       | Proceeds from disposition of assets, net of cash expenses                                        |                                                     |        |        |            |   |   |           |         |            |                | 5        |          |              |                |          |              |   |   |        |         |   |         | 5       |        
|                                                                                                       | Capital expenditures                                                                             |                                                     |        | (15,123 | )          |   |   |           |         |            |                | (11,542  | )        |              |                |          |              |   |   |        |         |   |         | (26,665 | )      
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | NET CASH USED IN INVESTING ACTIVITIES               |        |         | (15,123    | ) |   |            |        |            |                |          | (11,537  | )            |                |           |             |   |   |         |        |   |         |         | (26,660 | )
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|FINANCING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |         |         |   |         |        
|                                                                                                       | Repayment of debt                                                                                |                                                     |        |        |            |   |   | (1,500     | )       |            |                | (116     | )        |              |                |          |              |   |   |        |         |   |         | (1,616  | )      
|                                                                                                       | Proceeds from the exercise of employee stock options                                             |                                                     |        |        |            |   |   |           |         |            |                |         |          |              |                | 853       |              |   |   |        |         |   |         | 853     |        
|                                                                                                       | Proceeds from issuance of common stock under employee stock
    purchase plan                    |                                                     |        |        |            |   |   |           |         |            |                |         |          |              |                | 384       |              |   |   |        |         |   |         | 384     |        
|                                                                                                       | Cash received (paid to) from affiliates                                                          |                                                     |        | 8,758   |            |   |   | 192,586    |         |            |                | (165,365 | )        |              |                | (17,147   | )            |   |   | (18,832 | )       |   |         |        |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES |        |         | 8,758      |   |   |            | 191,086 |            |                |          | (165,481 | )            |                |           | (15,910      | ) |   |         | (18,832 | ) |         |         | (379    | )
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|NET CASH USED IN DISCONTINUED OPERATIONS                                                               |                                                                                                  |                                                     |       |         |            |   |  |            |         |            |               |          |          |              |               |           |              |   |  |         |         |   |        |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                              |                                                                                                  |                                                     | 12,602 |         |            |   |  |            |         |            | (7,245         | )        |          |              |               |           |              |   |  |         |         |   | 5,357   |        
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                         |                                                                                                  |                                                     | 62,871 |         |            |   |  |            |         |            | 69,949         |          |          |              |               |           |              |   |  |         |         |   | 132,820 |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                                               |                                                                                                  | $                                                   | 75,473 |         |            | $ |  |            |         | $          | 62,704         |          |          | $            |               |           |              | $ |  |         |         | $ | 138,177 |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  

18



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING BALANCE SHEET FINANCIAL DATA


As of May 31, 2005


|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |          |            |           |            |            |           |          |           |           | 
|---------------------------------------------- | ---------------------------------------------- | ----------------------------------- | ---------- | -------- | ---------- | ------- | -------- | ---------- | -------- | ---------- | -------------- | -------- | --------- | ------------ | -------------- | --------- | ------------ | -------- | ---------- | --------- | ---------- | ---------- | --------- | -------- | --------- | --------- | 
|                                               |                                                | Centennial                          |            |          | Centennial |         |          |            |          |            |                |          |           | Centennial   |               
|                                               |                                                | Puerto Rico                         |            |          | Cellular   |         |          |            |          | Centennial |                |          |           |              | Communications |          
|                                               |                                                | Operations                          |            |          | Operating  |         |          | Non-       |          |            | Communications |          |           |              |                | Corp. and |             
|                                               |                                                | Corp.                               |            |          | Co. LLC    |         |          | Guarantors |          |            | Corp.          |          |           | Eliminations |                |           | Subsidiaries |         
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                | (Amounts in thousands)              |           
|ASSETS                                        
|Current assets:                                |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |          |            |           |            |            |           |         
|                                               | Cash and cash equivalents                      |                                     | $          | 62,871   |            |         | $        |           |          |            | $              | 69,949   |           |              | $              |          |              |          | $          |          |            |            | $         | 132,820  |          
|                                               | Accounts receivable, net                       |                                     |            | 49,233   |            |         |          |           |          |            |                | 54,076   |           |              |                |          |              |          |            |          |            |            |           | 103,309  |          
|                                               | Inventory  phones and accessories, net        |                                     |            | 15,757   |            |         |          |           |          |            |                | 8,956    |           |              |                |          |              |          |            |          |            |            |           | 24,713   |          
|                                               | Prepaid expenses and other current assets      |                                     |            | 5,291    |            |         |          |           |          |            |                | 27,239   |           |              |                |          |              |          |            |          |            |            |           | 32,530   |          
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                | Total current assets                |            |          | 133,152    |         |          |            |         |            |                |          | 160,220   |              |                |           |             |          |            |           |           |            |           |          | 293,372   |          
|Property, plant & equipment, net               |                                                |                                     | 232,830    |          |            |         |         |            |          |            | 386,117        |          |           |              |               |           |              |          |           |           |            |            | 618,947   |         
|Equity investments in wireless systems, net    |                                                |                                     |           |          |            |         |         |            |          |            | 2,500          |          |           |              |               |           |              |          |           |           |            |            | 2,500     |         
|Debt issuance costs                            |                                                |                                     | 21,390     |          |            |         |         |            |          |            | 23,081         |          |           |              |               |           |              |          |           |           |            |            | 44,471    |         
|U.S. wireless licenses                         |                                                |                                     |           |          |            |         |         |            |          |            | 383,858        |          |           |              |               |           |              |          |           |           |            |            | 383,858   |         
|Caribbean wireless licenses, net               |                                                |                                     |           |          |            |         |         |            |          |            | 69,492         |          |           |              |               |           |              |          |           |           |            |            | 69,492    |         
|Goodwill                                       |                                                |                                     | 4,186      |          |            |         |         |            |          |            | 22,518         |          |           |              |               |           |              |          |           |           |            |            | 26,704    |         
|Intercompany                                   |                                                |                                     |           |          |            |         | 31,368   |            |          |            |               |          |           |              | 270,604        |           |              |          | (301,972   | )         |            |            |          |         
|Investment in subsidiaries                     |                                                |                                     |           |          |            |         | 945,859  |            |          |            | 653,009        |          |           |              | (751,780       | )         |              |          | (847,088   | )         |            |            |          |         
|Other assets, net                              |                                                |                                     | 6,075      |          |            |         |         |            |          |            | 1,321          |          |           |              |               |           |              |          |           |           |            |            | 7,396     |         
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                | Total                               |            | $        | 397,633    |         |          | $          | 977,227  |            |                | $        | 1,702,116 |              |                | $         | (481,176     | )        |            | $         | (1,149,060 | )          |           | $        | 1,446,740 |          
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                              
|LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY
|Current liabilities:                           |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |          |            |           |            |            |           |         
|                                               | Current portion of long-term debt              |                                     |            | 16       |            |         |          | 5,727      |          |            |                | (5       | )         |              |                |          |              |          |            |          |            |            |           | 5,738    |          
|                                               | Accounts payable                               |                                     |            | 21,398   |            |         |          |           |          |            |                | 15,255   |           |              |                |          |              |          |            |          |            |            |           | 36,653   |          
|                                               | Accrued expenses and other current liabilities |                                     |            | 568,471  |            |         |          |           |          |            |                | 378,677  |           |              |                |          |              |          |            | (754,645  | )          |            |           | 192,503  |          
|                                               | Payable to affiliates                          |                                     |            |         |            |         |          |           |          |            |                | 125      |           |              |                |          |              |          |            |          |            |            |           | 125      |          
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                | Total current liabilities           |            |          | 589,885    |         |          |            | 5,727    |            |                |          | 394,052   |              |                |           |             |          |            |           | (754,645   | )          |           |          | 235,019   |          
|Long-term debt                                 |                                                |                                     | 829,329    |          |            |         | 783,720  |            |          |            | 322            |          |           |              |               |           |              |          |           |           |            |            | 1,613,371 |         
|Deferred federal income taxes                  |                                                |                                     |           |          |            |         |         |            |          |            | 99,719         |          |           |              |               |           |              |          |           |           |            |            | 99,719    |         
|Other liabilities                              |                                                |                                     | 4,904      |          |            |         |         |            |          |            | 9,708          |          |           |              |               |           |              |          |           |           |            |            | 14,612    |         
|Intercompany                                   |                                                |                                     | (5,202     | )        |            |         | 920,500  |            |          |            | 1,101,971      |          |           |              |               |           |              |          | (2,017,269 | )         |            |            |          |         
|Minority Interest in subsidiaries              |                                                |                                     |           |          |            |         |         |            |          |            | 2,451          |          |           |              |               |           |              |          |           |           |            |            | 2,451     |         
|Stockholders (deficit) equity:                |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |          |            |           |            |            |           |         
|                                               | Common stock                                   |                                     |            |         |            |         |          |           |          |            |                |         |           |              |                | 1,041     |              |          |            |          |            |            |           | 1,041    |          
|                                               | Additional paid-in capital                     |                                     |            | (819,886 | )          |         |          |           |          |            |                | 819,886  |           |              |                | 480,276   |              |          |            |          |            |            |           | 480,276  |          
|                                               | Accumulated deficit                            |                                     |            | (200,618 | )          |         |          | (732,720   | )        |            |                | (725,993 | )         |              |                | (961,416  | )            |          |            | 1,622,854 |            |            |           | (997,893 | )        
|                                               | Accumulated other comprehensive loss           |                                     |            | (779     | )          |         |          |           |          |            |                |         |           |              |                |          |              |          |            |          |            |            |           | (779     | )        
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                |                                     | (1,021,283 | )        |            |         | (732,720 | )          |          |            | 93,893         |          |           |              | (480,099       | )         |              |          | 1,622,854  |           |            |            | (517,355  | )       
|                                               | Less: treasury shares                          |                                     |            |         |            |         |          |           |          |            |                |         |           |              |                | (1,077    | )            |          |            |          |            |            |           | (1,077   | )        
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                | Total stockholders (deficit)equity |            |          | (1,021,283 | )       |          |            | (732,720 | )          |                |          | 93,893    |              |                |           | (481,176     | )        |            |           | 1,622,854  |            |           |          | (518,432  | )        
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         
|                                               |                                                |                                     | Total      |          | $          | 397,633 |          |            | $        | 977,227    |                |          | $         | 1,702,116    |                |           | $            | (481,176 | )          |           | $          | (1,149,060 | )         |          | $         | 1,446,740 | 
|                                               |                                                |                                     |            |          |            |         |          |            |          |            |                |          |           |              |                |           |              |         

19



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FINANCIAL
DATA


For the Three Months Ended August 31, 2004


|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |   |         |   |  |   |         |  
|---------------------------------------------------------------------------------------------------------------------------- |  | ---------------------- | ------- | - | ---------- | - | ------ | ---------- |  | ---------- | -------------- | - |  | ------------ | -------------- | --------- | ------------ | - | ------- | - |  | - | ------- | -
|                                                                                                                             |  | Centennial             |         |   | Centennial |   |        |            |  |            |                |   |  | Centennial   |               
|                                                                                                                             |  | Puerto Rico            |         |   | Cellular   |   |        |            |  | Centennial |                |   |  |              | Communications |          
|                                                                                                                             |  | Operations             |         |   | Operating  |   |        | Non-       |  |            | Communications |   |  |              |                | Corp. and |             
|                                                                                                                             |  | Corp.                  |         |   | Co. LLC    |   |        | Guarantors |  |            | Corp.          |   |  | Eliminations |                |           | Subsidiaries |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|                                                                                                                             |  | (Amounts in thousands) |        
|Revenue                                                                                                                      |  | $                      | 91,564  |   |            | $ |       |            |  | $          | 127,202        |   |  | $            |               |           |              | $ | (1,984  | ) |  | $ | 216,782 |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Costs and expenses:                                                                                                          |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |   |         |   |  |   |         |  
|Cost of services (exclusive of depreciation and amortization
    shown below)                                                |  |                        | 13,237  |   |            |   |       |            |  |            | 29,278         |   |  |              |               |           |              |   | (1,025  | ) |  |   | 41,490  |  
|Cost of equipment sold                                                                                                       |  |                        | 6,352   |   |            |   |       |            |  |            | 14,974         |   |  |              |               |           |              |   |        |   |  |   | 21,326  |  
|Sales and marketing                                                                                                          |  |                        | 9,686   |   |            |   |       |            |  |            | 14,938         |   |  |              |               |           |              |   |        |   |  |   | 24,624  |  
|General and administrative                                                                                                   |  |                        | 19,199  |   |            |   |       |            |  |            | 19,501         |   |  |              |               |           |              |   | (959    | ) |  |   | 37,741  |  
|Depreciation and amortization                                                                                                |  |                        | 16,691  |   |            |   |       |            |  |            | 12,467         |   |  |              |               |           |              |   |        |   |  |   | 29,158  |  
|Loss (gain) on disposition of assets                                                                                         |  |                        | 531     |   |            |   |       |            |  |            | (99            | ) |  |              |               |           |              |   |        |   |  |   | 432     |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|                                                                                                                             |  |                        | 65,696  |   |            |   |       |            |  |            | 91,059         |   |  |              |               |           |              |   | (1,984  | ) |  |   | 154,771 |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Operating income                                                                                                             |  |                        | 25,868  |   |            |   |       |            |  |            | 36,143         |   |  |              |               |           |              |   |        |   |  |   | 62,011  |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Income (loss) from investments in subsidiaries                                                                               |  |                        |        |   |            |   | 8,467  |            |  |            | 831            |   |  |              | 8,467          |           |              |   | (17,765 | ) |  |   |        |  
|Interest expense, net                                                                                                        |  |                        | (24,475 | ) |            |   | (9,300 | )          |  |            | (2,704         | ) |  |              |               |           |              |   |        |   |  |   | (36,479 | )
|Other expenses                                                                                                               |  |                        | (411    | ) |            |   |       |            |  |            | (467           | ) |  |              |               |           |              |   |        |   |  |   | (878    | )
|Intercompany interest allocation                                                                                             |  |                        |        |   |            |   | 9,300  |            |  |            | (9,300         | ) |  |              |               |           |              |   |        |   |  |   |        |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Income (loss) from continuing operations before income tax
    expense, minority interest and income from equity investments |  |                        | 982     |   |            |   | 8,467  |            |  |            | 24,503         |   |  |              | 8,467          |           |              |   | (17,765 | ) |  |   | 24,654  |  
|Income tax expense                                                                                                           |  |                        | (151    | ) |            |   |       |            |  |            | (13,959        | ) |  |              |               |           |              |   |        |   |  |   | (14,110 | )
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Income (loss) from continuing operations before minority
    interest and income from equity investments                     |  |                        | 831     |   |            |   | 8,467  |            |  |            | 10,544         |   |  |              | 8,467          |           |              |   | (17,765 | ) |  |   | 10,544  |  
|Minority interest in loss                                                                                                    |  |                        |        |   |            |   |       |            |  |            | (226           | ) |  |              |               |           |              |   |        |   |  |   | (226    | )
|Income from equity investments                                                                                               |  |                        |        |   |            |   |       |            |  |            | 145            |   |  |              |               |           |              |   |        |   |  |   | 145     |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Income (loss) from continuing operations                                                                                     |  |                        | 831     |   |            |   | 8,467  |            |  |            | 10,463         |   |  |              | 8,467          |           |              |   | (17,765 | ) |  |   | 10,463  |  
|Loss from discontinued operations                                                                                            |  |                        |        |   |            |   |       |            |  |            | (1,996         | ) |  |              |               |           |              |   |        |   |  |   | (1,996  | )
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  
|Net income (loss)                                                                                                            |  | $                      | 831     |   |            | $ | 8,467  |            |  | $          | 8,467          |   |  | $            | 8,467          |           |              | $ | (17,765 | ) |  | $ | 8,467   |  
|                                                                                                                             |  |                        |         |   |            |   |        |            |  |            |                |   |  |              |                |           |              |  

20



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FINANCIAL
DATA


For the Three Months Ended August 31, 2004


|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |          |          |   |         |         |         |  
|------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------ | --------------------------------------------------- | ------ | ------- | ---------- | - | - | ---------- | ------- | ---------- | -------------- | -------- | -------- | ------------ | -------------- | --------- | ------------ | - | - | -------- | -------- | - | ------- | ------- | ------- | -
|                                                                                                       |                                                                                                  | Centennial                                          |        |         | Centennial |   |   |            |         |            |                |          |          | Centennial   |               
|                                                                                                       |                                                                                                  | Puerto Rico                                         |        |         | Cellular   |   |   |            |         | Centennial |                |          |          |              | Communications |          
|                                                                                                       |                                                                                                  | Operations                                          |        |         | Operating  |   |   | Non-       |         |            | Communications |          |          |              |                | Corp. and |             
|                                                                                                       |                                                                                                  | Corp.                                               |        |         | Co. LLC    |   |   | Guarantors |         |            | Corp.          |          |          | Eliminations |                |           | Subsidiaries |  
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | (Amounts in thousands)                              |       
|OPERATING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |          |          |   |         |        
|                                                                                                       | Net income                                                                                       |                                                     | $      | 831     |            |   | $ | 8,467      |         |            | $              | 8,467    |          |              | $              | 8,467     |              |   | $ | (17,765  | )        |   | $       | 8,467   |        
|Adjustments to reconcile net income (loss) to net cash provided
    by (used in) operating activities: |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |          |          |   |         |        
|                                                                                                       | Depreciation and amortization                                                                    |                                                     |        | 16,691  |            |   |   |           |         |            |                | 18,366   |          |              |                |          |              |   |   |         |          |   |         | 35,057  |        
|                                                                                                       | Minority interest in income of subsidiaries                                                      |                                                     |        |        |            |   |   |           |         |            |                | 226      |          |              |                |          |              |   |   |         |          |   |         | 226     |        
|                                                                                                       | Income from equity investments                                                                   |                                                     |        |        |            |   |   |           |         |            |                | (145     | )        |              |                |          |              |   |   |         |          |   |         | (145    | )      
|                                                                                                       | Equity in undistributed earnings of subsidiaries                                                 |                                                     |        |        |            |   |   | (8,467     | )       |            |                | (831     | )        |              |                | (8,467    | )            |   |   | 17,765   |          |   |         |        |        
|                                                                                                       | Distributions received from equity investments                                                   |                                                     |        |        |            |   |   |           |         |            |                | 570      |          |              |                |          |              |   |   |         |          |   |         | 570     |        
|                                                                                                       | Loss (gain) on disposition of assets                                                             |                                                     |        | 531     |            |   |   |           |         |            |                | 148      |          |              |                |          |              |   |   |          |          |   |         | 679     |        
|                                                                                                       | Changes in assets and liabilities, net of effects of
    acquisitions and dispositions and other |                                                     |        | (1,380  | )          |   |   | (37,214    | )       |            |                | 672,029  |          |              |                | (129,300  | )            |   |   | (533,765 | )        |   |         | (29,630 | )      
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       | Total adjustments                                                                                |                                                     |        | 15,842  |            |   |   | (45,681    | )       |            |                | 690,363  |          |              |                | (137,767  | )            |   |   | (516,000 | )        |   |         | 6,757   |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES |        |         | 16,673     |   |   |            | (37,214 | )          |                |          | 698,830  |              |                |           | (129,300     | ) |   |          | (533,765 | ) |         |         | 15,224  |  
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|INVESTING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |          |          |   |         |        
|                                                                                                       | Proceeds from disposition of assets, net of cash expenses                                        |                                                     |        |        |            |   |   |           |         |            |                | 20       |          |              |                |          |              |   |   |         |          |   |         | 20      |        
|                                                                                                       | Capital expenditures                                                                             |                                                     |        | (18,491 | )          |   |   |           |         |            |                | (10,629  | )        |              |                |          |              |   |   |         |          |   |         | (29,120 | )      
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | NET CASH USED IN INVESTING ACTIVITIES               |        |         | (18,491    | ) |   |            |        |            |                |          | (10,609  | )            |                |           |             |   |   |          |         |   |         |         | (29,100 | )
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|FINANCING ACTIVITIES:                                                                                  |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |   |   |          |          |   |         |        
|                                                                                                       | Repayment of debt                                                                                |                                                     |        | (21     | )          |   |   | (1,500     | )       |            |                | (113     | )        |              |                |          |              |   |   |         |          |   |         | (1,634  | )      
|                                                                                                       | Proceeds from the exercise of employee stock options                                             |                                                     |        |        |            |   |   |           |         |            |                |         |          |              |                | 193       |              |   |   |         |          |   |         | 193     |        
|                                                                                                       | Proceeds from issuance of common stock under employee stock
    purchase plan                    |                                                     |        |        |            |   |   |           |         |            |                |         |          |              |                | 425       |              |   |   |         |          |   |         | 425     |        
|                                                                                                       | Cash (paid to) received from affiliates                                                          |                                                     |        | 3,791   |            |   |   | 38,714     |         |            |                | (704,952 | )        |              |                | 128,682   |              |   |   | 533,765  |          |   |         |        |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|                                                                                                       |                                                                                                  | NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES |        |         | 3,770      |   |   |            | 37,214  |            |                |          | (705,065 | )            |                |           | 129,300      |   |   |          | 533,765  |   |         |         | (1,016  | )
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                   |                                                                                                  |                                                     | 1,952  |         |            |   |  |            |         |            | (16,844        | )        |          |              |               |           |              |   |  |          |          |   | (14,892 | )      
|CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                         |                                                                                                  |                                                     | 42,484 |         |            |   |  |            |         |            | 69,620         |          |          |              |               |           |              |   |  |          |          |   | 112,104 |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  
|CASH AND CASH EQUIVALENTS, END OF PERIOD                                                               |                                                                                                  | $                                                   | 44,436 |         |            | $ |  |            |         | $          | 52,776         |          |          | $            |               |           |              | $ |  |          |          | $ | 97,212  |        
|                                                                                                       |                                                                                                  |                                                     |        |         |            |   |   |            |         |            |                |          |          |              |                |           |              |  

21



---



##### 



NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 10. Restatement






|                                      |                               |                       |  |          |             |  |  |          |           | 
|------------------------------------- | ----------------------------- | --------------------- |  | -------- | ----------- |  |  | -------- | --------- | 
|                                      |                               | As of August 31, 2005 | 
|                                      |                               |                       | 
|                                      |                               | As Previously         |  |          |            
|                                      |                               | Reported              |  |          | As Restated | 
|                                      |                               |                       |  |          |             | 
|Liabilities and Stockholders Deficit |                               |                       |  |          |             |  |  |         
|                                      | Current Liabilities           |                       |  | 218,766  |             |  |  | 219,262  |          
|                                      | Deferred federal income taxes |                       |  | 73,679   |             |  |  | 109,660  |          
|                                      | Accumulated deficit           |                       |  | (946,741 | )           |  |  | (983,218 | )        
|                                      |                               |                       |  |          |             | 
|                                      |                               | Total                 |  | $        | 1,456,303   |  |  | $        | 1,456,303 | 
|                                      |                               |                       |  |          |             | 



22



---



##### 








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

EXECUTIVE OVERVIEW




| |                 
| | ----------------
| | Company Overview









| |                     
| | --------------------
| | Managements Summary









23



---



##### 











| |   |                                                                               
| | - | ------------------------------------------------------------------------------
| |  | Gross postpaid and prepaid wireless additions                                 
|
| |  | Net gain (loss)  wireless subscribers                                        
|
| |  | Revenue per average wireless customer (including roaming
    revenue), or ARPU
|
| |  | Roaming revenue                                                               
|
| |  | Penetration  total wireless                                                  
|
| |  | Postpaid churn  wireless                                                     
|
| |  | Prepaid churn  Caribbean wireless                                            
|
| |  | Average monthly minutes of use per wireless customer                          
|
| |  | Fiber route miles  Caribbean broadband                                       
|
| |  | Switched access lines  Caribbean broadband                                   
|
| |  | Dedicated access line equivalents  Caribbean broadband                       
|
| |  | On-net buildings  Caribbean broadband                                        
|
| |  | Capital expenditures                                                          







24



---



##### 























25



---



##### 



CRITICAL ACCOUNTING ESTIMATES








| |   |                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | it requires us to make assumptions because information was not
    available at the time or it included matters that were highly
    uncertain at the time we were making the estimate, and     
|
| |  | changes in the estimate or different estimates that we could
    have selected may have had a material effect on our consolidated
    financial condition or consolidated results of operations.



| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts





| |                                                 
| | ------------------------------------------------
| | Property, Plant and Equipment 
    Depreciation







| |                               
| | ------------------------------
| | Valuation of Long-Lived Assets



26



---



##### 







| |                                                                                                  
| | -------------------------------------------------------------------------------------------------
| | Goodwill and Wireless Licenses  Valuation of
    Goodwill and Indefinite-Lived Intangible Assets



RESULTS OF OPERATIONS






Consolidated Operations


|                                               |                   |                        |        |      |      |   |        |        |  |   |        |      |  |  |    |    |  
|---------------------------------------------- | ----------------- | ---------------------- | ------ | ---- | ---- | - | ------ | ------ |  | - | ------ | ---- |  |  | -- | -- | -
|                                               |                   | Three Month Ended      |        |      |      |   |       
|                                               |                   | August 31,             |        |      |      |   |       
|                                               |                   |                        |        |      | $    |   |        | %      | 
|                                               |                   | 2005                   |        |      | 2004 |   |        | Change |  |   | Change |     
|                                               |                   |                        |        |      |      |   |        |        |  |   |        |     
|                                               |                   | (Unaudited)            |        |      |      |   |       
|                                               |                   | (In thousands,         |        |      |      |   |       
|                                               |                   | except per share data) |        |      |      |   |       
|Operating income                               |                   | $                      | 61,517 |      |      | $ | 62,011 |        |  | $ | (494   | )    |  |  | (1 | )%
|Income from continuing operations              |                   |                        | 14,610 |      |      |   | 10,463 |        |  |   | 4,147  |      |  |  | 40 | % 
|Earnings per share from continuing operations: |                   |                        |        |      |      |   |        |        |  |   |        |      |  |  |    |   
|                                               | Basic and diluted |                        |        | 0.14 |      |   |        | 0.10   |  |   |        | 0.04 |  |  |    | 40 | %

27



---



##### 



U.S. Wireless Operations


|                             |                          |                    |        |         |      |   |        |         |  |   |        |        |  |  |     |    | 
|---------------------------- | ------------------------ | ------------------ | ------ | ------- | ---- | - | ------ | ------- |  | - | ------ | ------ |  |  | --- | -- | 
|                             |                          | Three Months Ended |        |         |      |   |       
|                             |                          | August 31,         |        |         |      |   |       
|                             |                          |                    |        |         | $    |   |        | %       | 
|                             |                          | 2005               |        |         | 2004 |   |        | Change  |  |   | Change |       
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       
|                             |                          | (Unaudited)        |        |         |      |   |       
|                             |                          | (In thousands)     |        |         |      |   |       
|Revenue:                     |                          |                    |        |         |      |   |        |         |  |   |        |        |  |  |     |   
|Service revenue              |                          | $                  | 80,903 |         |      | $ | 85,918 |         |  | $ | (5,015 | )      |  |  | (6  | )%
|Roaming revenue              |                          |                    | 21,225 |         |      |   | 13,308 |         |  |   | 7,917  |        |  |  | 59  |   
|Equipment sales              |                          |                    | 5,698  |         |      |   | 3,841  |         |  |   | 1,857  |        |  |  | 48  |   
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       
|                             | Total revenue            |                    |        | 107,826 |      |   |        | 103,067 |  |   |        | 4,759  |  |  |     | 5  | 
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       
|Costs and expenses:          |                          |                    |        |         |      |   |        |         |  |   |        |        |  |  |     |   
|Cost of services             |                          |                    | 22,884 |         |      |   | 16,792 |         |  |   | 6,092  |        |  |  | 36  |   
|Cost of equipment sold       |                          |                    | 14,582 |         |      |   | 11,423 |         |  |   | 3,159  |        |  |  | 28  |   
|Sales and marketing          |                          |                    | 12,605 |         |      |   | 12,607 |         |  |   | (2     | )      |  |  |    |   
|General and administrative   |                          |                    | 17,102 |         |      |   | 14,292 |         |  |   | 2,810  |        |  |  | 20  |   
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       
|                             | Total costs and expenses |                    |        | 67,173  |      |   |        | 55,114  |  |   |        | 12,059 |  |  |     | 22 | 
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       
|Adjusted operating income(1) |                          | $                  | 40,653 |         |      | $ | 47,953 |         |  | $ | (7,300 | )      |  |  | (15 | )%
|                             |                          |                    |        |         |      |   |        |         |  |   |        |       






|    |                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Adjusted operating income represents the profitability measure
    of the segment  see Note 8 to the condensed
    consolidated financial statements for a reconciliation of
    consolidated adjusted operating income to the appropriate GAAP
    measure.

Revenue.










28



---



##### 





Costs and expenses.










| |                              
| | -----------------------------
| | Caribbean Wireless Operations

|                             |                          |                    |        |        |      |   |        |        |  |   |        |        |  |  |     |    | 
|---------------------------- | ------------------------ | ------------------ | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ |  |  | --- | -- | 
|                             |                          | Three Months Ended |        |        |      |   |       
|                             |                          | August 31,         |        |        |      |   |       
|                             |                          |                    |        |        | $    |   |        | %      | 
|                             |                          | 2005               |        |        | 2004 |   |        | Change |  |   | Change |       
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       
|                             |                          | (Unaudited)        |        |        |      |   |       
|                             |                          | (In thousands)     |        |        |      |   |       
|Revenue:                     |                          |                    |        |        |      |   |        |        |  |   |        |        |  |  |     |   
|Service revenue              |                          | $                  | 92,132 |        |      | $ | 79,962 |        |  | $ | 12,170 |        |  |  | 15  | % 
|Roaming revenue              |                          |                    | 346    |        |      |   | 458    |        |  |   | (112   | )      |  |  | (24 | ) 
|Equipment sales              |                          |                    | 3,322  |        |      |   | 2,585  |        |  |   | 737    |        |  |  | 29  |   
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       
|                             | Total revenue            |                    |        | 95,800 |      |   |        | 83,005 |  |   |        | 12,795 |  |  |     | 15 | 
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       
|Costs and expenses:          |                          |                    |        |        |      |   |        |        |  |   |        |        |  |  |     |   
|Cost of services             |                          |                    | 16,130 |        |      |   | 12,686 |        |  |   | 3,444  |        |  |  | 27  |   
|Cost of equipment sold       |                          |                    | 10,459 |        |      |   | 9,685  |        |  |   | 774    |        |  |  | 8   |   
|Sales and marketing          |                          |                    | 11,172 |        |      |   | 10,245 |        |  |   | 927    |        |  |  | 9   |   
|General and administrative   |                          |                    | 21,206 |        |      |   | 18,151 |        |  |   | 3,055  |        |  |  | 17  |   
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       
|                             | Total costs and expenses |                    |        | 58,967 |      |   |        | 50,767 |  |   |        | 8,200  |  |  |     | 16 | 
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       
|Adjusted operating income(1) |                          | $                  | 36,833 |        |      | $ | 32,238 |        |  | $ | 4,595  |        |  |  | 14  | % 
|                             |                          |                    |        |        |      |   |        |        |  |   |        |       






|    |                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Adjusted operating income represents the profitability measure
    of the segment  see Note 8 to the condensed
    consolidated financial statements for a reconciliation of
    consolidated adjusted operating income to the appropriate GAAP
    measure.

Revenue.


29



---



##### 













Costs and expenses.










30



---



##### 



Caribbean Broadband Operations


|                              |                          |                    |        |        |      |   |        |        |  |   |        |        |   |  |     |     |  
|----------------------------- | ------------------------ | ------------------ | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | - |  | --- | --- | -
|                              |                          | Three Months Ended |        |        |      |   |       
|                              |                          | August 31,         |        |        |      |   |       
|                              |                          |                    |        |        | $    |   |        | %      | 
|                              |                          | 2005               |        |        | 2004 |   |        | Change |  |   | Change |       
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       
|                              |                          | (Unaudited)        |        |        |      |   |       
|                              |                          | (In thousands)     |        |        |      |   |       
|Revenue:                      |                          |                    |        |        |      |   |        |        |  |   |        |        |   |  |     |    
|Switched revenue              |                          | $                  | 12,715 |        |      | $ | 11,379 |        |  | $ | 1,336  |        |   |  | 12  | %  
|Dedicated revenue             |                          |                    | 14,282 |        |      |   | 12,534 |        |  |   | 1,748  |        |   |  | 14  |    
|Wholesale termination revenue |                          |                    | 6,576  |        |      |   | 7,572  |        |  |   | (996   | )      |   |  | (13 | )  
|Other revenue                 |                          |                    | 3,096  |        |      |   | 2,024  |        |  |   | 1,072  |        |   |  | 53  |    
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       
|                              | Total revenue            |                    |        | 36,669 |      |   |        | 33,509 |  |   |        | 3,160  |   |  |     | 9   |  
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       
|Costs and expenses:           |                          |                    |        |        |      |   |        |        |  |   |        |        |   |  |     |    
|Cost of services              |                          |                    | 13,065 |        |      |   | 14,667 |        |  |   | (1,602 | )      |   |  | (11 | )  
|Cost of equipment sold        |                          |                    | 141    |        |      |   | 218    |        |  |   | (77    | )      |   |  | (35 | )  
|Sales and marketing           |                          |                    | 1,773  |        |      |   | 1,772  |        |  |   | 1      |        |   |  |    |    
|General and administrative    |                          |                    | 4,993  |        |      |   | 5,442  |        |  |   | (449   | )      |   |  | (8  | )  
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       
|                              | Total costs and expenses |                    |        | 19,972 |      |   |        | 22,099 |  |   |        | (2,127 | ) |  |     | (10 | )
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       
|Adjusted operating income(1)  |                          | $                  | 16,697 |        |      | $ | 11,410 |        |  | $ | 5,287  |        |   |  | 46  | %  
|                              |                          |                    |        |        |      |   |        |        |  |   |        |       






|    |                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Adjusted operating income represents the profitability measure
    of the segment  see Note 8 to the condensed
    consolidated financial statements for a reconciliation of
    consolidated adjusted operating income to the appropriate GAAP
    measure.

Revenue.










Costs and expenses.


31



---



##### 







LIQUIDITY AND CAPITAL RESOURCES


Weighted Average Debt Outstanding and Interest Expense


|                                        |  |                    |         |   |      |   |         |        |  |   |        |  
|--------------------------------------- |  | ------------------ | ------- | - | ---- | - | ------- | ------ |  | - | ------ | -
|                                        |  | Three Months Ended |         |   |     
|                                        |  | August 31,         |         |   |     
|                                        |  |                    |         |   |     
|                                        |  | 2005               |         |   | 2004 |   |         | Change | 
|                                        |  |                    |         |   |      |   |         |        | 
|                                        |  | (In millions)      |         |   |     
|Weighted Average Debt Outstanding       |  | $                  | 1,618.8 |   |      | $ | 1,768.6 |        |  | $ | (149.8 | )
|Weighted Average Gross Interest Rate(1) |  |                    | 8.6     | % |      |   | 8.3     | %      |  |   | 0.3    | %
|Weighted Average Gross Interest Rate(2) |  |                    | 8.2     | % |      |   | 7.9     | %      |  |   | 0.3    | %
|Gross Interest Expense(1)               |  | $                  | 34.86   |   |      | $ | 36.70   |        |  | $ | (1.84  | )
|Interest Income                         |  | $                  | 0.86    |   |      | $ | 0.22    |        |  | $ | 0.64   |  
|                                        |  |                    |         |   |      |   |         |        | 
|Net Interest Expense                    |  | $                  | 34.00   |   |      | $ | 36.48   |        |  | $ | (2.48  | )
|                                        |  |                    |         |   |      |   |         |        | 






|    |                                              
|--- | ---------------------------------------------
|(1) | Including amortization of debt issuance costs
|   
|(2) | Excluding amortization of debt issuance costs









1 8


32



---



##### 





3 4
















33



---



##### 









ACQUISITIONS AND DISPOSITIONS






COMMITMENTS AND CONTINGENCIES










34



---



##### 









|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |         |         |  |   |           |           | 
|---------------------------------- | --- | ----- | --------- | --------- | ------ | - | ------ | --------- |  | - | --------- | ------ |  | ------- | ------- | ------- |  | - | --------- | --------- | 
|                                   |     |       |           | Less      |        |   |        |           |  |   |          
|                                   |     |       |           | Than      |        |   |        |           |  |   | After     |       
|Contractual Obligations            |     | Total |           |           | 1 Year |   |        | 1-3 Years |  |   | 4-5 Years |        |  | 5 Years |        
|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |        
|Long-term debt obligations         |     | $     | 1,618,400 |           |        | $ | 5,742  |           |  | $ | 11,837    |        |  | $       | 436,554 |         |  | $ | 1,164,267 |          
|Operating leases obligations       |     |       | 170,357   |           |        |   | 17,777 |           |  |   | 28,578    |        |  |         | 23,115  |         |  |   | 100,887   |          
|Purchase obligations               |     |       | 69,143    |           |        |   | 14,946 |           |  |   | 21,021    |        |  |         | 21,879  |         |  |   | 11,297    |          
|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |        
|Total contractual cash obligations |     |       | 1,857,900 |           |        |   | 38,465 |           |  |   | 61,436    |        |  |         | 481,548 |         |  |   | 1,276,451 |          
|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |        
|Sublessor agreements(1)            |     |       | (3,162    | )         |        |   | (1,073 | )         |  |   | (1,446    | )      |  |         | (566    | )       |  |   | (77       | )        
|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |        
|                                   | Net |       | $         | 1,854,738 |        |   | $      | 37,392    |  |   | $         | 59,990 |  |         | $       | 480,982 |  |   | $         | 1,276,374 | 
|                                   |     |       |           |           |        |   |        |           |  |   |           |        |  |         |        






|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | Represents our commitments associated with our sublessor
    agreements as of May 31, 2005.

35



---



##### 



CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE
HARBOR


PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995








| |   |                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the effects of vigorous competition in our markets, which may
    make it difficult for us to attract and retain customers and to
    grow our customer base and revenue and which may increase churn,
    which could reduce our revenue and increase our costs;                                         
|
| |  | the fact that many of our competitors are larger than we are,
    have greater financial resources than we do, are less leveraged
    than we are, have more extensive coverage areas than we do, and
    may offer less expensive and more technologically advanced
    products and services than we do;
|
| |  | changes and developments in technology, including our ability to
    upgrade our networks to remain competitive and our ability to
    anticipate and react to frequent and significant technological
    changes which may render certain technologies used by us
    obsolete;                          
|
| |  | our substantial debt obligations, including restrictive
    covenants and consequences of default contained in our financing
    arrangements, which place limitations on how we conduct business;                                                                                                        
|
| |  | our ability to attract subscribers in our newly launched markets
    in Grand Rapids and Lansing, Michigan;                                                                                                                                                                                               
|
| |  | market prices for the products and services we offer may
    continue to decline in the future;                                                                                                                                                                                                           
|
| |  | the effects of consolidation in the telecommunications industry;                                                                                                                                                                                                                                          
|
| |  | general economic, business, political and social conditions in
    the areas in which we operate, including the effects of world
    events, terrorism, hurricanes, tornadoes, wind storms and other
    natural disasters;                                                                               
|
| |  | our access to the latest technology handsets in a timeframe and
    at a cost similar to our competitors;                                                                                                                                                                                                 
|
| |  | the effect on our business of wireless local number portability,
    which permits the wireless phone numbers that we allocate to our
    customers to be portable when our customers switch to another
    carrier;                                                                                      
|
| |  | our ability to successfully deploy and deliver wireless data
    services to our customers;                                                                                                                                                                                                               
|
| |  | our ability to generate cash and the availability and cost of
    additional capital to fund our operations and our significant
    planned capital expenditures, including the need to refinance or
    amend existing indebtedness;                                                                     
|
| |  | our dependence on roaming agreements for a significant portion
    of our wireless revenue and the expected decline in roaming
    revenue over the long term;                                                                                                                                            
|
| |  | our dependence on roaming agreements for our ability to offer
    our wireless customers competitively priced regional and
    nationwide rate plans that include areas for which we do not own
    wireless licenses;                                                                                    
|
| |  | our ability to attract and retain qualified personnel;                                                                                                                                                                                                                                                    

36



---



##### 





| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the effects of governmental regulation of the telecommunications
    industry, including changes in the level of support provided to
    us by the Universal Service Fund;                                                                          
|
| |  | fluctuations in currency values related to our Dominican
    Republic operations;                                                                                                                                                                   
|
| |  | our ability to acquire, and the cost of acquiring, additional
    spectrum in our markets to support growth and advanced
    technologies;                                                                                                          
|
| |  | our ability to manage, implement and monitor billing and
    operational support systems;                                                                                                                                                           
|
| |  | the results of litigation filed or which may be filed against
    us, including litigation relating to wireless billing, using
    wireless telephones while operating an automobile or possible
    health effects of radio frequency transmission;
|
| |  | the relative liquidity and corresponding volatility of our
    common stock and our ability to raise future equity
    capital; and                                                                                                                 
|
| |  | the control of us retained by some of our stockholders and
    anti-takeover provisions.                                                                                                                                                            








|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk



37



---



##### 





|                                                  |                                   |                              |   |         |      |  |   |         |   |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |           | 
|------------------------------------------------- | --------------------------------- | ---------------------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | ----- | - | ---- | - | ------- | ---------- |  | - | ------- | - |  | ---------- | ------- | - |  | - | --------- | - |  | - | --------- | 
|                                                  |                                   | Fiscal Year Ended August 31, |   |         |      |  |   |         |  
|                                                  |                                   |                              |   |         |      |  |   |         |  
|                                                  |                                   | 2006                         |   |         | 2007 |  |   | 2008    |   |  | 2009 |       |   | 2010 |   |         | Thereafter |  |   | Total   |   |  | Fair Value |        
|                                                  |                                   |                              |   |         |      |  |   |         |   |  |      |       |   |      |   |         |            |  |   |         |   |  |            |        
|                                                  |                                   | (In thousands)               |  
|Long-term debt:                                   |                                   |                              |   |         |      |  |   |         |   |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |          
|                                                  | Fixed rate                        |                              | $ | (258    | )    |  | $ | (170    | ) |  | $    | 7     |   |      | $ | 145,218 |            |  | $ | 336     |   |  | $          | 882,267 |   |  | $ | 1,027,400 |   |  | $ | 1,111,250 | 
|                                                  | Average fixed Interest rate       |                              |   | 10.6    | %    |  |   | 10.0    | % |  |      | 10.0  | % |      |   | 10.8    | %          |  |   | 10.0    | % |  |            | 9.4     | % |  |   | 9.6       | % |  |   |          | 
|                                                  | Variable rate                     |                              | $ | 6,000   |      |  | $ | 6,000   |   |  | $    | 6,000 |   |      | $ | 6,000   |            |  | $ | 285,000 |   |  |            | 282,000 |   |  | $ | 591,000   |   |  | $ | 591,000   | 
|                                                  | Average variable Interest rate(1) |                              |   | 4.3     | %    |  |   | 4.3     | % |  |      | 4.4   | % |      |   | 4.5     | %          |  |   | 4.7     | % |  |            | 4.8     | % |  |   | 4.7       | % |  |   |          | 
|Interest rate swap (pay fixed, receive variable): |                                   |                              |   |         |      |  |   |         |   |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |          
|                                                  | Notional amount                   |                              | $ | 250,000 |      |  | $ | 250,000 |   |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |           | 
|                                                  | Average pay rate                  |                              |   | 6.29    | %    |  |   | 6.29    | % |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |           | 
|                                                  | Average receive rate              |                              |   | 6.54    | %    |  |   | 6.58    | % |  |      |       |   |      |   |         |            |  |   |         |   |  |            |         |   |  |   |           |   |  |   |           | 






|    |                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------
|(1) | Represents the average interest rate before applicable margin on
    the New Senior Secured Credit Facility debt.








|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures







38



---



##### 






PART II  OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings












|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits



|            |    |             |  |                                                                                                                                
|----------- | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 31 | .1          |  | Certification of Michael J. Small, Chief Executive Officer,
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.     
|            | 31 | .2          |  | Certification of Thomas J. Fitzpatrick, Chief Financial Officer,
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|            | 32 | .1          |  | Certification of Michael J. Small, Chief Executive Officer,
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     
|            | 32 | .2          |  | Certification of Thomas J. Fitzpatrick, Chief Financial Officer,
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 

39



---



##### 



SIGNATURES






| |                                
| | -------------------------------
| | CENTENNIAL COMMUNICATIONS CORP.
|
| | /s/ Thomas J. Fitzpatrick      
| |                                
| | Thomas J. Fitzpatrick          
| | Executive Vice President,      
| | Chief Financial Officer        
| | (Chief Financial Officer)      
|
| | /s/ Francis P. Hunt            
| |                                
| | Francis P. Hunt                
| | Sr. Vice President-Controller  
| | (Chief Accounting Officer)     



40